Yes you are correct, but its hardly an extreme position, i think the us share should be back at 50% not 70%. I can afford to be wrong a bit but the guys constructing the funds can't. They can't afford to miss out on any US growth despite the risks because they get slated if nvidia has another great year and they were not fully exposed. If it goes bad they can say we were just following the market.But be honest with yourself - you are making an active decision that you know better than the aggregate market consensus.
And then the MSCI EM Index went up something like 30-40%. European indexes did well too I think. The smart money is diversifying and you hear about it all over the youtubeosphere.international equity fund being heavily exposed to US tech stocks , then 71% of its stocks were US and predominately the Mag 7, they must have been reading my posts because now they are only at 66% US lol
And unfortunately alot of standard pensions and the new myfuturefund doesn't give people much scope to reallocate from the US markets or bonds. All you get to choose are high risk, medium risk and low risk.Choosing to reallocate from US to international isn't timing the market, it's addressing over-concentration
There is no stock picker in an index fund. They buy shares exactly in proportion to the market capitalisation (i.e. size in €) of each stock in that market.World/Global Equity indexes are all the same and we have to trust the stock pickers to know when to quit certain allocations.
Yes, but don't all such passive index funds have their own proprietary "algorithm" for when and how to buy/sell? Otherwise why would there be any marginal difference in returns between, say, Vanguard and BlackRock for funds tracking the same index?There is no stock picker in an index fund. They buy shares exactly in proportion to the market capitalisation (i.e. size in €) of each stock in that market.
They have their own methodology for how to track the index. They don't always hold all of the components of the index. That's how you get the tracking error.have their own proprietary "algorithm" for when and how to buy/sell?
The "zurich international equity fund" i was discussing is an acrively managed fund not an index fund though i accept it generally will try and follow those global indices with high US stock exposure.don't think anyone gets to enquire about these things. World/Global Equity indexes are all the same and we have to trust the stock pickers to know when to quit certain allocations.
Hi there. Intrigued by the term actioned. This implies you started an ARF but have not yet drawn it down? Would be interested to know if so and how? Many thanks in advance.actioned
Seems clear to me. Using one of their pension pots they took 25% as a tax free lump sum (and put that on deposit) and transferred the remaining 75% to an ARF from which no income will be drawn until maybe 2027.This implies you started an ARF but have not yet drawn it down?
I have a few pension pots, and because of the very well flagged uncertainty to come. i actioned an ARF on the largest of these in mid December, at a relative market high. The uncertainty was one reason, the other is i will probably commence drawdowns, from that specific ARF probably in 2027, so at least, 25 % of that fund is locked down, and was immediately reinvested in full in a 2 year 6% gross fixed rate savings account, albeit the balance, is currently affected, and has dropped circa 8%, since mid December, but i won’t be changing my strategy, will roll with it.
What do you mean by "how"? You can buy an ARF with a pension any time after the relevant retirement age (50 in many cases) and not draw any income from it until the year in which you turn 61 at which point you'll have to take at least 4% p.a. (and 5% from the year in which you turn 71).Would be interested to know if so and how?
Thanks Clubman. I only have one pot (company pension plan). Didn’t know one could take TFLS and place balance in ARF and not drawdown until later date (I understood once activated mandatory 4% to 71 or pay tax on same as though one had drawn 4%). Hence question. I’m 64.no income
Not if you're under 61.I understood once activated mandatory 4% to 71 or pay tax on same as though one had drawn 4%).
In your case you'd have to take 4% if/when you start an ARF.I’m 64.